Weclome

Welcome to Collapsium. Today the shit is hitting the fan with Fannie Mae and Freddie Mac being seized by the government. I figured it would be a great starting point for my new blog about the collapse of modern society and the beginning of the New Dark Age.

One of the most important aspects of the new Dark Age will be concentration of wealth (money, property, and resources) to an elite few. These people will be the new aristocracy, and, much like the dark ages of the early European medieval period, these elites will be free to run amok and abuse their power at will.

The emergence of this new aristocracy is contingent upon the transfer of wealth from the middle class to the elites. Today’s seizure of Fannie and Freddie is the new model for how this will occur (warfare being the older model). Basically, it goes like this:

1) Institutions that are deemed “too large to failure” that are run by elites will become involved in various forms of the ponzi schemes, pyramid schemes or bubble schemes to quickly run up a high virtual value.

2) When the scheme begins to fail, the government will seize the institution.

3) The government will then used wealth taken from the middle class (taxes) to prop up these institutions converting that virtual value from step 1 into actual value.

4) The elites in charge of these institutions then bail out with “golden parachutes”.

Today this is happening with Fannie and Freddie. If you check out this CNN article, one of the most important things to note is how the bail out is only for the holders of preferred stock, i.e. the elites.